Contents Chapter 1 - Fares Overview.............................. 1 Fare References................................... 2 Terms......................................... 4 Tariff/Fare Quote Display............................... 8 Published Normal Fares................................ 9 Published Discount/Excursion Fares........................ 10 Constructed Fares.................................. 11 Summary....................................... 14 STOP Review and Apply............................... 15 Chapter 2 - Discount Fares And Fare Basis Codes.................. 17 Discount Fares.................................... 18 Fare Basis Codes.................................. 21 Interpreting Fare Basis Codes............................ 22 Summary....................................... 26 STOP Review and Apply............................... 27 Chapter 3 - Interpreting Fare And Rule Displays................... 29 How To Read Tariff Displays............................ 30 Fare Rules...................................... 32 Interpreting Fare Rules............................... 35 Summary....................................... 39 STOP Review and Apply............................... 40 Chapter 4 - Constructed Fares............................ 45 Constructed Normal Fares.............................. 46 Constructed Discount Fares............................. 50 Constructed Round-Trip Fares............................ 52 Summary....................................... 57 STOP Review and Apply............................... 58 Chapter 5 - Interpreting Taxes And Fees....................... 59 Overview....................................... 60 Terms........................................ 61 Fare Calculation Line/Fare Ladder.......................... 62 U.S. Taxes...................................... 63 U.S. Fees And Surcharges............................. 67 U.S. Tax Summary.................................. 70 Canadian Taxes................................... 71 Canadian Tax Summary.............................. 74 STOP Review and Apply.............................. 75 FT/SH/FTSH14.VP ES 2007 iii
Contents Chapter 6 - Domestic Airline Tickets......................... 79 Distribution System................................. 80 A Contract...................................... 81 Automated Tickets (ATBs).............................. 83 Flight Coupons.................................... 84 Interpreting ATBs.................................. 84 Currency and Codes................................. 86 Electronic Tickets (ET)................................ 87 Prepaid Ticket Advice (PTA)............................. 88 Interpreting a Prepaid Ticket Advice (PTA)..................... 90 Miscellaneous Charges Order (MCO)........................ 92 Interpreting a Miscellaneous Charges Order (MCO)................. 94 Tour Order...................................... 95 Interpreting a Tour Order.............................. 96 Summary....................................... 97 STOP Review and Apply............................... 98 Chapter 7 - Methods Of Payment.......................... 101 Acceptable Forms of Payment........................... 102 Charge Forms................................... 104 Additional Forms of Payment............................ 106 Summary...................................... 107 STOP Review and Apply.............................. 108 Chapter 8 - Refunds................................. 109 Refund Guidelines and Procedures........................ 110 Voids And Reissues................................ 111 Refund Guidelines and Procedures........................ 112 Full Refund..................................... 112 Partial Refunds................................... 113 Refund/Exchange Notice (REN).......................... 115 Interpreting Refund/Exchange Notices (RENs)................... 116 Summary...................................... 123 STOP Review and Apply.............................. 124 Chapter 9 - Exchanges................................ 131 Types of Exchanges................................ 132 Exchange Guidelines and Procedures....................... 133 Interpreting RENs.................................. 134 Summary...................................... 143 STOP Review and Apply.............................. 144 iv ES 2007 FT/SH/FTSH14.VP
Contents Chapter 10 - International Fares Overview..................... 149 Controlling Organizations.............................. 150 International Faring................................. 151 Terms........................................ 152 Types of Trips................................... 153 General Rules................................... 154 International Fare Basis Codes........................... 155 Currency...................................... 156 Summary...................................... 159 STOP Review and Apply.............................. 160 Chapter 11 - Routing-Based Fares......................... 165 Benefits and Features............................... 166 Fare Quote..................................... 167 Routing Fare Rule................................. 168 Fare Calculation.................................. 170 More Displays................................... 171 Fare Calculation.................................. 173 Summary...................................... 174 STOP Review and Apply.............................. 175 Chapter 12 - Mileage Fares............................. 179 Benefits and Features............................... 180 Mileage Elements.................................. 181 The Process.................................... 182 Minimum Checks.................................. 183 Mileage Elements in Detail............................. 184 International Fares Flow Chart........................... 190 Summary...................................... 191 STOP Review and Apply.............................. 192 Chapter 13 - International Ticketing......................... 195 Interpreting International Tickets.......................... 196 Fare Calculation Lines............................... 198 Summary...................................... 199 STOP Review and Apply.............................. 200 Appendix....................................... A-1 Codes........................................ A-2 Buffer Zone Cities.................................. A-4 Notices....................................... A-5 24-Hour Clock.................................... A-8 Time Zones..................................... A-9 Time Zone Map.................................. A-10 Documentation.................................. A-11 U. S. Customs................................... A-13 Currency Exchange Procedures.......................... A-14 Travel Advisories................................. A-14 Glossary....................................... G-1 FT/SH/FTSH14.VP ES 2007 v
Chapter 1 - Fares Overview Introduction How much does it cost? What is the fare? The answer to that question must be provided many times each day. Domestic fares are multiple and volatile. The carriers operate in a highly competitive market. The cost of an airline ticket goes up and down with a variety of ticketing and traveling restrictions and there are multiple fares between all major cities. The quoting of fares and the pricing of air itineraries is complex. Automation of reservations and fares assists you in quoting the lowest applicable fare. The traditional automation, Global Distribution Systems (GDSs) or Computer Reservations Systems (CRSs), are your primary fare and pricing resources in the workplace. Alternatives to traditional GDSs, including the World Wide Web, now add to that resource making many different options available for the travel professional. Even the traveling public has access to fares, thanks to the Internet. In this chapter we will provide an overview of domestic airfares, introduce you to some valuable references and resources and then concentrate on some basic faring terms and codes used in the industry. You will want to memorize the codes. In the remainder of the chapters we have used GDS displays to explore air fares and teach you to interpret such displays. After completing this chapter you should be able to... Name three fare references Identify, define and diagram four trip types Differentiate between normal fares and discount fares Differentiate between published fares and constructed fares Define the fare terms included in this chapter FT/SH/FTSH14.VP ES 2007 1
Chapter 3 - Interpreting Fare And Rule Displays Summary The format of tariff displays varies from GDS to GDS. In general, tariff displays include such things as: City pairs Date of display Discount fares and normal fares Fare basis which includes the booking code Minimum and maximum stays Advance purchase requirements Effective travel dates, when applicable Effective ticketing dates, when applicable Routing Every fare is governed by a fare rule or rules. Normal fares are year-round fares with no restrictions on purchase time, travel time or refunds and changes. Normal fare construction is governed by Rule 165, which provides for point-to-point construction. Discount fares are governed by special fare rules. Each fare rule includes all the travel and purchase conditions as well as the construction information for a specific fare as identified by the fare basis code. Some fares have more restrictions than others and therefore those rules will be longer. Each fare rule is divided into informational categories or subjects. Each category describes a particular type of restriction or condition of travel including: Booking Code Flight Application Penalties/Changes Stopovers/Open Jaw Reservations and Ticketing Open Return Minimum and Maximum Stay Combinability Day/Time Application Co-terminals Seasonal Application Surcharges and Fees Blackouts Reroute Effective/Expiration Dates CHALLENGE You can access fares and rules through the Internet. Sites such as http://expedia.com and www.travelocity.com allow you to request air travel, price it and then read the rules for the fare. Explore these sites or others of your choice and compare with the information found here. Report your findings to your instructor. FT/SH/FTSH14.VP ES 2007 37
Chapter 5 - Interpreting Taxes And Fees U.S. Tax Summary The definitions to remember when applying U.S. transportation taxes and fees are: United States - the 50 states and the District of Columbia. Continental United States - the contiguous 48 states and the District of Columbia. Buffer Zones - those areas of Canada and Mexico within 225 miles of the borders of the continental United States. Domestic Travel - travel wholly within the continental U.S., travel to and within Alaska and Hawaii, and travel to, within, and between the U.S. and the buffer zones. International Travel - travel beyond the buffer zones. Ticketing Codes need to be memorized to efficiently interpret faring information. TICKET CODE AY Q US US US US XA XF XT XY YC ZP Tax Description and Application U.S. Security Service Fee - This security fee is levied by the U.S. Government on any enplanement in the Untied States. It is currently 2.50. Surcharge - Fees assessed the airlines by airports and municipalities and/or fuel surcharges that are passed on to the consumer. Amounts vary. U.S. Ticket Tax - The domestic percentage tax on travel within the continental U.S., within Alaska and within Hawaii, currently 7.5%. Alaska/Hawaii Ticket Tax - A ratio of the 7.5% U.S. Ticket Tax. U.S. International Departure/Arrival Tax - Applicable to all arrivals in or departures from the United States. Currently 15.10. Alaska/Hawaii International Travel Facilities Tax - Applicable to travel involving departures to or from Alaska or Hawaii. Currently 7.50. Animal and Plant Health Inspection Service (APHIS) Fee is applicable to travel into the U.S. and Puerto Rico from any international point except Canada. Currently 5.00. Passenger Facility Charge (PFC) - Assessed by an airport for airport improvement. Maximum 2 PFCs for a one-way ticketed journey, maximum 4 PFCs for a round-trip ticketed journey. Amount is usually 3.00 or 4.50. Combined Taxes/User Fees - This code is used when more than two taxes apply on the ticket. A breakdown of the taxes is shown in the fare calculation area of the ticket. Immigration Inspection Fee (INS) - Applicable to travel into the U.S., Puerto Rico, Guam, and U.S. Virgin Islands. Currently 7.00 U.S. Customs User Fee - Applies to travel from any international point, except Canada, Mexico and select Caribbean islands, into the U.S. and Puerto Rico. Currently 5.00. U.S. Flight Segment Tax - charged for flights from non-rural airports. The current amount is 3.40 with increases from that point on indexed for inflation. 68 ES 2007 FT/SH/FTSH14.VP
Chapter 9 - Exchanges STOP Review and Apply 5. Refer to the REN below to answer the following questions: a. Is this a straight refund, add collect, even exchange or refund with exchange? b. Is there an administrative fee or penalty on this exchange? c. What is the total cost of the old ticket? d. What is the amount to be collected? e. Who is this REN for? 144 ES 2007 FT/SH/FTSH14.VP
Chapter 9 - Exchanges STOP Review and Apply 6. Refer to the REN below to answer the following questions: a. Is this a straight refund, add collect, even exchange or refund with exchange? b. What is the new ticket number? c. What date was this REN issued? d. What is the base fare of the old ticket? e. What is the amount of U.S. tax? f. What is the amount of the segment tax (ZP)? FT/SH/FTSH14.VP ES 2007 145